New York: US electric car maker Tesla It reported its first quarterly profit of more than $1 billion on Monday, reiterating its 2021 production targets despite supply chain turmoil.
Record deliveries of electric cars during Elon’s allowed period muskThe company expects to generate revenue of $1.1 billion in the quarter, up from $104 million in the same period a year ago, as revenue nearly doubled to $12.0 billion.
Musk described the profit benchmark as “a truly incredible milestone,” but cautioned that the growth rate for the rest of the year “will be determined by the slowest part of our supply chain.”
In addition to shortages of semiconductors plaguing automakers around the world, Musk also cited shortages of lithium and other raw materials as wildcards.
Musk has been a pacesetter in the industry, unveiling a growing slate of electric vehicles ahead of other traditional industry players. But analysts caution that the company is facing increasing competition from new models being launched by General Motors, Volkswagen and others.
Tesla reiterated its 2021 forecast, saying: “Over a multi-year horizon, we expect to achieve 50% average annual growth in vehicle delivery. In a few years, we could grow faster, which is in 2021.” is expected to be.”
The language is similar to last quarter, though Tesla repeatedly hinted at supply chain problems.
Musk said on a conference call with analysts and investors that the semiconductor problem “seems like it’s getting better, but it’s hard to predict.”
He also warned that “anything wrong anywhere on Earth could damage the company’s supply chain.”
Tesla said it has made progress in greenfield factories in Germany and the state of Texas, which are on track to produce Model Y vehicles later in 2021.
However, the company pushed back the deadline to launch its semi truck program to 2022, citing limited availability of battery cells and other supply issues.
Musk also said he expected slow progress on the futuristic Cybertruck, where ramp-up would be “difficult” due to the vehicle’s unconventional architecture.
Tesla’s results included $354 million in revenue associated with regulatory credit sales to other carmakers as part of policies encouraged to promote the use of EVs (electric vehicles).
In the year-ago period, Tesla generated $428 million in revenue from these credits.
A $23 million drop in the value of bitcoin assets offset gains slightly.
Karl Breuer, Analyst ET iSeeCars.com, said Tesla managed to offset higher material costs with lower costs elsewhere in the operation.
“Tesla’s numbers, beating estimates by a healthy margin, confirm strong global demand for EVs, which outweigh Tesla’s near-term challenges,” Breuer said in an email.
Tesla’s earnings growth hit US EV sales above 100,000 for the first time in the last quarter, according to a report by Cox Automotive that highlights brisk sales for EVs made by Ford, General Motors and Volkswagen.
“Tesla is and will be the dominant force in the EV market for some time,” Cox said, adding that Musk’s magic brand represents a small piece of the growing pie.
Cox said Tesla’s US EV market share fell to 64 percent from 83 percent a year ago.
But Musk suggested he welcomed other EVs, elaborating on a recent statement that Tesla would open its charging network to EVs made by other automakers. The machines will be available to those who download the smartphone application and purchase the adapter.
“Our goal is to support the advent of sustainable energy,” Musk said. “This is not the creation of a walled garden and is not used to undermine our competitors.”
Opening up the network would also create another revenue stream for Tesla. Musk said the company plans to charge more to reach chargers in rush hour than for shorter usage times.
The stock rose 1.0 per cent to $664.23 in after-hours trading.
Record deliveries of electric cars during Elon’s allowed period muskThe company expects to generate revenue of $1.1 billion in the quarter, up from $104 million in the same period a year ago, as revenue nearly doubled to $12.0 billion.
Musk described the profit benchmark as “a truly incredible milestone,” but cautioned that the growth rate for the rest of the year “will be determined by the slowest part of our supply chain.”
In addition to shortages of semiconductors plaguing automakers around the world, Musk also cited shortages of lithium and other raw materials as wildcards.
Musk has been a pacesetter in the industry, unveiling a growing slate of electric vehicles ahead of other traditional industry players. But analysts caution that the company is facing increasing competition from new models being launched by General Motors, Volkswagen and others.
Tesla reiterated its 2021 forecast, saying: “Over a multi-year horizon, we expect to achieve 50% average annual growth in vehicle delivery. In a few years, we could grow faster, which is in 2021.” is expected to be.”
The language is similar to last quarter, though Tesla repeatedly hinted at supply chain problems.
Musk said on a conference call with analysts and investors that the semiconductor problem “seems like it’s getting better, but it’s hard to predict.”
He also warned that “anything wrong anywhere on Earth could damage the company’s supply chain.”
Tesla said it has made progress in greenfield factories in Germany and the state of Texas, which are on track to produce Model Y vehicles later in 2021.
However, the company pushed back the deadline to launch its semi truck program to 2022, citing limited availability of battery cells and other supply issues.
Musk also said he expected slow progress on the futuristic Cybertruck, where ramp-up would be “difficult” due to the vehicle’s unconventional architecture.
Tesla’s results included $354 million in revenue associated with regulatory credit sales to other carmakers as part of policies encouraged to promote the use of EVs (electric vehicles).
In the year-ago period, Tesla generated $428 million in revenue from these credits.
A $23 million drop in the value of bitcoin assets offset gains slightly.
Karl Breuer, Analyst ET iSeeCars.com, said Tesla managed to offset higher material costs with lower costs elsewhere in the operation.
“Tesla’s numbers, beating estimates by a healthy margin, confirm strong global demand for EVs, which outweigh Tesla’s near-term challenges,” Breuer said in an email.
Tesla’s earnings growth hit US EV sales above 100,000 for the first time in the last quarter, according to a report by Cox Automotive that highlights brisk sales for EVs made by Ford, General Motors and Volkswagen.
“Tesla is and will be the dominant force in the EV market for some time,” Cox said, adding that Musk’s magic brand represents a small piece of the growing pie.
Cox said Tesla’s US EV market share fell to 64 percent from 83 percent a year ago.
But Musk suggested he welcomed other EVs, elaborating on a recent statement that Tesla would open its charging network to EVs made by other automakers. The machines will be available to those who download the smartphone application and purchase the adapter.
“Our goal is to support the advent of sustainable energy,” Musk said. “This is not the creation of a walled garden and is not used to undermine our competitors.”
Opening up the network would also create another revenue stream for Tesla. Musk said the company plans to charge more to reach chargers in rush hour than for shorter usage times.
The stock rose 1.0 per cent to $664.23 in after-hours trading.
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